China: World Bank to support rooftop solar for schools, low carbon city and key urban infrastructure development

WASHINGTON, March 20, 2013 - Today the World Bank Board of Directors approved five loans totaling US$620 million to the People’s Republic of China to install rooftop solar for public schools in Beijing, promote a low carbon city in Shanghai, and improve key urban infrastructure and public services in selected cities and towns in the two provinces of Jiangxi and Liaoning.

“China is experiencing rapid urbanization which is projected to reach 70 percent in 2030. Energy demand for buildings and transport will increase rapidly – energy demand and related CO2 emissions would triple for the buildings and appliances. Lack of basic infrastructure and efficiency of public services is a challenge facing many smaller Chinese cities and towns.” said Mark Lundell, World Bank Sector Manager for the Sustainable Development Department for China and Mongolia. “We are pleased to support the Government of China’s efforts to reduce energy intensity, carbon emissions and urban vulnerability to floods, and improve urban public services for the people. Greener buildings, cleaner energy supply and more coordinated development of large, medium-sized and small cities will benefit both China and the world,” adds Lundell.

Beijing Rooftop Solar PV Scale-Up Project, which received an IBRD loan of $120 million, will support the Beijing “Sunshine Schools” Program which will install 100 MW of rooftop PV systems in about 800 public schools and colleges in Beijing. It is the largest of such initiatives in China so far. The capacities of most systems are expected to range from 50 to 200 kW. The program will test the Renewable Energy Service Company (RESCO) business model for distributed rooftop solar PV systems, with enhanced after-sale service. It is also expected to pilot two-way metering for rooftop PV systems. If proven commercially successful, the project would provide valuable experience for developing similar schemes in other Chinese cities with promising solar resources.

Green Energy Schemes for Low-carbon City in Shanghai, which received an IBRD loan of $100 million, will assist Shanghai’s efforts to achieve low-carbon city development by promoting green energy schemes. With a focus in Changning district, the project has two components: firstly, the project will provide technical assistance and capacity building for green buildings, low carbon energy supply, and green mobility, and support near zero-emission buildings. Secondly, the project will support low-carbon investments focused on building retrofit and new low-emission buildings. The project also received a $4.345 million grant from the Global Environment Facility (GEF).

Jiangxi Wuxikou Integrated Flood Management Project, which received an IBRD loan of $100 million, will assist Jingdezhen City in reducing the flood risk in the central urban area. Flood losses are enormous and increasingly so in recent decades. In Jingdezhen, the flood in 1998 put 31 km2 under water for 94 hours and affected 354,000 people and over 2,000 production entities with an estimated direct loss of over US$354 million. The project will finance construction of the Wuxikou Flood Control Scheme to upgrade the flood protection standard for the Jingdezhen City from a 20-year flood event to a 50-year flood event, as well as establishment of an integrated flood risk management system for the city.

Jiangxi Poyang Lake Basin and Ecological Economic Zone Small Town Development Project, whichreceived a loan of $150 million, will focus on improving transport and water resources infrastructure and capacity building. Specifically it will finance construction and upgrading of urban and country roads and a new central bus station; flood protection and drainage systems, wastewater and storm water collection pipes, and a water treatment plant and associated water supply facilities in 11 selected counties and cities in the province. About 4 million residents and businesses are expected to benefit from better public services and improved environment around Poyang Lake, the largest freshwater lake in China.

Liaoning Coastal Economic Zone Urban Infrastructure and Environmental Management Project, which received an IBRD loan of $150 million, aims to improve the efficiency of urban transport and address water scarcity issues in selected cities. In Lingyuan and Suizhong, the project will focus on improving wastewater treatment and water reclamation to reduce pollution and foster more efficient use of water resources. In Donggang, Kuandian, Lingyuan, Longchentg District of Chaoyang City and Panjin, the project will finance construction of new urban roads and rehabilitation of existing roads to improve public transport systems and foster transit oriented development along selected public transport corridors by integrating land use and transport planning.